China's DeepSeek annualised revenue run rate hits $1 billion, the Information reports

(Corrects paragraph 4 to ‌say company to ​raise ​money via a fundraise, not an IPO)

Sept 24 (Reuters) - Chinese AI startup DeepSeek's annualised revenue run rate has hit $1 billion, more than ‌double from a few months ago, the Information reported on ⁠Thursday, citing two people with direct knowledge of the matter.

Run-rate revenue shows how much a ‌company would make in a ‌year if it continued performing at its current pace.

The figure underscores the rapid growth of the AI company that shook the tech industry last ​year after its models challenged US assumptions about China's AI capabilities. The company is planning to go public soon to fund its expansion.

CEO Liang ⁠Wenfeng shared the latest revenue figure at a recent meeting with investors, as the company pushes ahead ​with a second funding round targeting 50 billion yuan ($7.45 billion) at a valuation of 500 billion yuan by the end ​of October, the Information reported. DeepSeek is ‌also preparing for a potential listing on the Shanghai Stock Exchange, it added.

DeepSeek's revenue growth was partly driven by ⁠raising model pricing by 2.3 to 4.5 times, the news outlet said.

Reuters could not immediately verify the report. DeepSeek could not be immediately reached for comment.

DeepSeek had ⁠hired CITIC Securities to prepare for a potential STAR Market IPO, though the timing, valuation ​and fundraising size remain undecided, Reuters reported this month.

The AI firm continues to devote the bulk of its resources to developing new models, allocating more than 70% of ‌its computing capacity to training while reserving less than 30% for inference, or running existing models, Liang told investors, the ‌Information added.

Earlier this month, the company released its latest model, DeepSeek-V4.1-Flash, and said ⁠it is designed for greater capability, ‌faster inference, higher throughput ​and scaling to larger models.

($1 = 6.7131 Chinese yuan renminbi)

($1 = 6.7113 Chinese yuan renminbi)

(Reporting by Abu Sultan in Bengaluru; Editing by ‌Harikrishnan Nair)

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